Sunny Su, a principal at Lusheng Law Firm in Beijing, said: “This successful case underscores the increasing importance of IP protection for local and foreign brand owners in China’s agrifood industry, particularly given the rising demand for quality produce. Recognizing the significant time, financial investment and human resources required in the plant breeding process, this ruling highlights the enforceability of IP rights for asexually propagated materials like fruits and horticultural plants. We believe this outcome, supported by the comprehensive protection offered under the newly implemented Seed Law, will encourage local and international PVR holders to confidently protect their assets and invest in China.”
“This case represents one of the rare instances in the new plant varieties where punitive damages have been applied in high-compensation cases,” added Liping Xu, a senior associate at the same law firm. “The Supreme People’s Court elaborated on how harvested materials impact a variety of rights holders and concluded that calculating damages based on these infringing harvested materials better protects the competitive interests of these rights holders.

Furthermore, the destruction of illegally propagated plant materials is the most effective means of safeguarding the interests of PVR holders.”
The decision upholds an earlier ruling regarding the protection of EnzaFruit’s ‘Scilate’ apple plant variety rights by the Lanzhou Intermediate Court of Gansu Province in November 2023. The court found that the defendant had infringed EnzaFruit’s IP rights by unlawfully cultivating and selling ‘Scilate’ plant variety material and apples harvested from the illegal materials. The Supreme Court ordered the infringer to cease all violations and to destroy illegally propagated plant materials to protect the plaintiff’s rights and interests.

Morgan Rogers at EnzaFruit added: “This landmark ruling underscores China’s commitment to protecting plant variety rights, giving T&G Global greater confidence in our Chinese investments. With stronger IP protection, we can expand our licensing of premium varieties like ENVY® branded apples, benefiting Chinese consumers, partners, growers and our business. This decision paves the way for T&G Global to accelerate our growth plans and further contribute to China’s thriving horticulture sector.

With the defendant’s appeal dismissed, EnzaFruit will now also be entitled to file a new lawsuit and seek further compensation for the infringement of rights since the initial 2023 judgement.

The judgement by the Supreme People’s Court is a few of its kind, setting a precedent for foreign and domestic PVR holders by extending protection over any harvested fruit to propagation material of any variety, following the recent strengthening of China’s Seed Law.

- Excel V. Dyquiangco